Hi guys, I am quite aware that I am aging, I have target myself in these 3-4 yrs time to get a house. I would like to know how should I start to save before getting a house? Budget will be RM 200k. Can you guys help me on this? I really appreciate it.

wrong section..... should go

http://forum.lowyat.net/index.php?act=SF&s=&f=154

can moderator move my topic to that respective section please?

you asking how to saving money to bought a house?

@patrickyeo21,
Save the way u've been saving; and start looking out for something u like in the property market

hmm ... what I am concern now is I am afraid I unable to make it on time when I reach my target, my expenses has been high due to :-

a) car loan & petrol
b) ptpn loan
c) laptop

I am staying outside alone and earning around 3k. My expenses has been greatly touched around RM 2.5k per month for miscelleanous stuff.

@patrickyeo21,
In that case, U should think of ways to save before u even think of getting a house.

ask you another question, what if I managed to save around RM 20 -25k, can it be right time for me to get a house ? Can I use my EPF as a house downpayment ?

@patrickyeo21,
Yes u may withdraw from your EPF to make that house purchase. To buy a house, u also need to consider the loan repayment to the bank. Having saved enough for the downpayment may not mean u can afford the house.

I believe at that time I reached, I managed to clear 1/2 of my loan(debts). Should be fine isnt it ?

Let's look at some basic fact here.

You earn 3K per month. That means at most you can only afford around $1300 (33% rule) per month of monthly payment. This is assuming that you have no any other loan. If someone can do some calculation, this probably translate into a loan of 100K to 150K.

So, I doubt you can afford a house of 200K at 3K per month. You need to earn a lot more.

Dreamer

apart of downpayment and all those legal and admin fee, you will need a fix repayment every month until you have paid what you have borrowed.

lets say you get a mortgage of rm200k, and repayment period is for 15-20 years, you will need to pay approx. rm1.7k every month. that means, you will need extra rm1.7k from your salary just for the repayment, and failure to pay that amount of money monthly will cause your house to be repossessed.

This post has been edited by youngkies: Jan 6 2008, 07:41 AM

youngkies,

There is a 33% rule on loan. So, to take a loan of RM1.7K, you need to earn 1.7K X 3 = Rm5.1K per month just to qualify for the loan. This is assuming that you have NO OTHER LOAN repayment outstanding. If you do, you need to earn a lot more.

So, it cannot be done with income of RM3k per month.

Dreamer

Get a cheaper house or get more income.

Dreamer, TS can always opt for longer loan tenure. A 200k house typically requires 180k loan, and current monthly repayment based on todays loan rate (5%) and 30 years is only RM966 per month.

Its a bit of a strecth, but do-able IMO.

@Dreamer,
Perhaps TS has something to mortage to the bank?

hmmm ... thanks for the advice, I would like to know whether it is valid if I am not the only one who involve, I would like to include my gf as well ... can this be done by 33% requirement ?

Than that would be combined income. Yes it can be done. But are you sure you're eventually going to marry your GF?.....Think hard before double commiting yourself.

What if im just giving an example of such scenario, I would like to know whether it is possible ?

how can "Laptop" a one time off purchase be up there in the first place.

Cut down you expenses by half and you can afford a RM150K apartment/house today.

Just curious, how much you spending now on rental?

yes, you can combine income with another person to qualify for higher loan sum.

It is good are you thinking and planning of getting a home. My advise is that you start going to Home Ownership Exhibitions and do ask questions about legal fees, loans, downpayment, etc. Usually, the Home Ownership Campaign organized by REHDA have an EPF booth (you can check amount too) counter and other Banks booth too. Go ask questions and the people there would be more than glad to assist you on home ownership.

Start saving today as mentioned by others, there are other fees involved in puchasing a house. You also got to consider furniture, kitchen cabinet, renovation, etc etc.

This post has been edited by Gen-X: Jan 6 2008, 09:00 PM

gen-x, thanks for your advice, I guess it's better for me to consult them to get more info. Getting a home need a very huge $$$ .. haiz, until tua also cant get ...

@patrickyeo21,
There are plenty forumers here who's got houses/properties even before they reach the age 30 so what u said is really not entirely true.

As to taking a loan together with ur gf... well, i don't think that's too advisable - there's just too much hassle when the both of u break off. In fact, don't even think about sharing a house until u both are really married! The issues can be overwhelming.

patrickyeo21,

1) The problem here is you SPEND TOO MUCH. Hence, you cannot afford a house of 200K. Your choice and your decision.

2) You probably need another 30K beyond the down payment to move into a new house.

Dreamer

the repayment for rm200k loan over 20 year period, including interest is about rm1.7k permonth. the total repayment is about rm400k if you take 20 years to repay.

i'm currently doing that... with my income alone, i can never get a house at my age...

my gf and i bought a studio at almost 200k, and took 180k loan for 20 years, we split everything in the middle (downpayment, legal fees), monthly repayment is almost 1.3k, 650 each... if by chance she is unable to pay, i am still able to squeeze as i have no other loans

also... if getting from 2nd market, get at least partially furnished...
else get from a reputable developer so that you have have 1-2 years buffer to save/earn for slight reno, internal furnishing, etc... just my opinion...

@youngkies,
dreamer101 is right on the 33% rule. In order for the bank to give u the approval of a RM1.7k repayment loan per month, u would need to earn roughly 1.7k x 3 = RM5100 p/month before the bank would consider ur application.

Perhaps if income is slightly below RM5100 p/month the bank might still consider but this theory of 33% is about right.

Yes, you can purchase a new house with free legal fees and stamping. Don't think about 2nd hand, because you will need to pay legal fees and stamping (another few thousands).

Of course you can withdraw your EPF to pay downpayment.


What do you mean by "that time" ?? Do you mean your Car Loan.... ?? Perhaps after 3-4 years time you will have to buy another new car...

Yes, if your GF is in the picture. Then you can use ur salary + her salary x 33%... but i think with you salary alone you are affordable to get a loan.. the problem is not whether you can get a loan. The problem is whether you are able to pay the installment.

Get 30 years loan with daily interest.. so you can settle it earlier if you are rich at that time.

To buy a house with GF? I don't see any problem if both of you are stable and comfortable. This no body can help, try to think yourself... is true that will be a lot hassle if you break with your GF... but don't be too pessimistic..

I bought a house with my GF. We have no problem with it...

Dun worry house can get just spend wisely and save in addition you can now withdraw your EPF account 2 on a monthly basis to help settle your home loan.

Personally IMHO its better to get a house at a yourger age if you can afford it.

You can take a longer loan tenure 30 years which would help to reduce your monthly repayments and lessen your monthly financial burden.

Example:-

30 years
RM200k house - 10%downpayment @ 5.99% interest = RM1200 monthly repayment

20 years
RM200k house - 10%downpayment @ 5.99% interest = RM1450 monthly repayment

BTW where do you plan on settling down?

patrickyeo21 I agree with what tinkerbel says most forumers do get their properties fairly yound.

Check out the poll HERE and please vote too while you're there.

I also agree that purchasing a home with your GF might not be a good idea